A day after the US passed a resolution demanding human rights must be protected in Hong Kong, markets corrected once again. Assurances from China that the deal was on track did not really help sentiments. The trade deal had run into rough weather after China warned the US against interfering in Hong Kong affairs. US had set the ball rolling with a license extension to Huawei.

Crude oil spurts 189 bps to $63.58/bbl as political risks get accentuated in OPEC

The sharp spurt in the crude oil prices on Thursday had a more localized reason. Political tensions appear to be simmering in key OPEC nations like Iran and Iraq where a financial crunch is taking its toll. Venezuela and Algeria are already volatile and the recent drone attacks on Saudi Arabia only add to the instability in the region. Prices moved up on expected supply shocks in crude oil.

According to a report in the Hindu, the 2 year moratorium on spectrum dues is unlikely to help the telecom companies. Their real challenge was the AGR charges and that has left a big hole in their books in the second quarter. The telecom minister has already underscored that there will be no waiver of interest or penalty and no moratorium on the 3-month time frame for AGR.

The CEO of SBI MF averred that SBI would also list its MF business in the next two years. The two listed AMCs in India; HDFC AMC and Nippon AMC have seen a sharp rally in the last few days. SBI MF has an AUM that is closing in on HDFC and ICICI Pru while the equity AUM is already the largest for SBI. Normally MF valuations are based on equity AUM. SBI MF is a JV between SBI and Amundi.

Bank lending stands at Rs.250,000 crore in the month of October

The big push given by the finance minister to bank lending appears to have paid dividends in the month of October. Nearly half the total disbursement was to the corporate sector and out of that nearly 1/3rd was to the MSME segment across India. This should come as a major boost for industrial activity as it indicates that the credit wheels have once again started churning.

According to a Reuters report, the institutional portion of the IPO received $17.1 billion worth of bids, giving Aramco an opportunity to exercise the greenshoe option. The response to the retail portion is still quite tepid but that is expected to gradually pick up. The current valuation pegs the overall market cap of Saudi Aramco at $1.71 trillion, making it the world’s most valuable company.

Other news highlights

India's gold imports, which have a bearing on the current account deficit (CAD), dipped 9 percent to USD 17.63 billion (about Rs 1.25 tn) during April-October period of the current fiscal, according to Commerce Ministry data. Imports of the yellow metal stood at USD 19.4 billion in the same period of 2018-19. (Business Line)

IDBI Bank has entered into a share purchase agreement with Muthoot Finance to sell its entire stake of 66.67 percent in IDBI Asset Management and entire 100 percent stake in IDBI MF Trustee Company for Rs. 2.15 bn.(Bloomberg Quint)

In Vodafone Idea, Care Ratings has downgraded its rating for long-term bank facilities, NCDs from BBB- to A-. (Bloomberg Quint)

Power Grid has been declared as successful bidder in 2 intra-state transmission system projects of UP under tariff based competitive bidding. (Bloomberg Quint)

Power Grid Corporation of India Ltd (PGCIL) will "fight" any attempts by the Department of Telecommunications (DoT) to seek additional licence fees on the basis of a recent Supreme Court ruling, beyond the amounts that the state-owned enterprise has already paid, a senior official said. (Economic Times)

Reliance Communications said its lenders have rejected the resignation of Chairman Anil Ambani and four other directors, and asked them to cooperate in the ongoing corporate insolvency resolution process. (Mint)

SAIL is awaiting a response from ArcelorMittal regarding setting up a joint high-end automotive steel plant in India for which its board had given a go-ahead about two years ago, a top company official SAIL said. (Mint)

Unichem Laboratories received an abbreviated new drug application approval for Atenolol Tablets from U.S. FDA. (Bloomberg Quint)

Aurobindo Pharma expects to become a debt free company in the three next years barring the amount it is spending on acquisition of Sandoz products, a senior official of the city-based company has said. (ET)

The American health regulator has pulled up Torrent Pharmaceuticals' US-based subsidiary for violations of good manufacturing practices, including a lack of adequately designed equipment and packing material. (Money Control)

In BPCL, the government has set a 50-day deadline for an outside 'asset valuer' to carry out the valuation of all assets of Bharat Petroleum Corp Ltd (BPCL), a process once completed will trigger invitation of price bids from potential acquirers. (ET)

State-run power company NTPC is likely to raise around Rs. 100 bn through green bonds for acquisition of the government's stake in THDC India Ltd (THDCIL) and North Eastern Electric Power Corporation Ltd (ET)

No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account.

KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary. Attention Investors Prevent Unauthorized Transactions in your demat / trading account --> Update your Mobile Number/ email Id with your stock broker / Depository Participant. Receive information of your transactions directly from Exchanges on your mobile / email at the end of day and alerts on your registered mobile for all debits and other important transactions in your demat account directly from NSDL/ CDSL on the same day." - Issued in the interest of investors. Circular No.: NSDL/POLICY/2014/0094, NSE/INSP/27436, BSE - 20140901-21

Kindly note that as per NSE circulars nos: NSE/INVG/36333 dated November 17, 2017, NSE/INVG/37765 dated May 15.2018 and BSE circular nos: 20171117-18 dated November 17, 2017, 20180515-39 dated May 15.2018, trading in securities in which unsolicited messages are being circulated is restricted. The list of such stocks are available on the website of NSE & BSE. In case of any queries, request you to kindly get in touch with Customer Service on 18002099191/9292

Kotak securities Ltd. having composite licence no.CA0268 is a Corporate Agent of Kotak Mahindra Life Insurance Company Limited and Kotak Mahindra General Insurance Company Limited. We have taken reasonable measures to protect security and confidentiality of the Customer information.

The Stock Exchange, Mumbai is not in any manner answerable, responsible or liable to any person or persons for any acts of omission or commission, errors, mistakes and/or violation, actual or perceived, by us or our partners, agents, associates etc., of any of the Rules, Regulations, Bye-laws of the Stock Exchange, Mumbai, SEBI Act or any other laws in force from time to time.
The Stock Exchange, Mumbai is not answerable, responsible or liable for any information on this Website or for any services rendered by our employees, our servants, and us.

Please do not share your online trading password with anyone as this could weaken the security of your account and lead to unauthorized trades or losses. This cautionary note is as per Exchange circular dated 15th May, 2020.

Covid-19 impact to clients:-1. Applicable to clients on whose email id contract notes and other statements get bounced or who have opted for Physical contract notes/ other statements or Digital and Physical contract notes/ other statements :Due to the nationwide lockdown, we are unable send physical contract notes and other statements. To view them, log into www.kotaksecurities.com2. Kindly update your email id with us to receive contract notes/various statements electronically to avoid any further inconvenience.3. We are unable to issue the running account settlement payouts through cheque due to the lockdown. We request you to update your Bank account details to facilitate direct transfer to your linked bank account. You may approach our designated customer service desk or your branch to know the Bank details updation procedure.4. Exchange advisory: Investors are advised to exercise caution while taking investment decisions in these unpredictable times. Clients are also encouraged to keep track of the underlying physical as well as international commodity markets. Clients are advised to undertake transactions after understanding the nature of the contractual relationship into which they are entering and the extent of its exposure to risk. Clients are further advised to follow sound risk management practices and not to be carried away by unfounded rumors, tips etc.

That by submitting the above mentioned details, you are authorising Kotak Securities & its sub-brokers & agents to call you and send promotional communication even though you may be registered under DNC.